The team's executive vice president of football operations, John Elway, announced the deal Monday.
The Denver Post (http://bit.ly/N4qiY5) reported the contract was worth $13 million, including a $3 million signing bonus.
Prater was a clutch performer down the stretch in 2011 with four game-winning field goals.
Prater had three straight weeks in which he kicked the winner on the game's final play. That helped the Broncos go on a six-game winning streak that propelled them into the playoffs for the first time in six seasons.
In his five seasons with the Broncos, Prater has converted more than 80 percent of his field goal attempts.
Prater says he's ready to prove himself and why he got a long-term contract. "I need to show everyone that I'm worth it," he said.
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